1. Field of the Invention
The invention relates to an Internet based computer system component exchange. More specifically, the invention comprises a system and method for providing an exchange server complex in a network for executing buy orders for purchasing computer components.
2. Description of the Prior Art and Related Information
As personal computers (PCs) have become more a part of people's everyday lives, sales have increased for PCs, thus creating a major market for those who assemble and sell them. At the same time, demand for computer components has increased, causing equal increases in manufacturing of those computer components. Such computer components as used herein may comprise both internal computer components such as processors, hard disk drives, floppy disk drives, memory chips and internal modems; or external computer components or peripherals such as printers, scanners and external modems. Further, due to the Internet and increased use other networks, the same market changes have occurred with respect to mid-range or server computers. Further, these computer components may comprise components at the computer assembly level, or sub-assembly level such as computer components for computer motherboards.
More recently, due to historical high demand, more and more sellers of computers, and manufacturers of computer components have entered the market. This has caused higher supplies of both computers and computer components to enter the market. This is especially so given the advent of computer component interface standards making these computer components more interchangeable. In effect, computer components have become less like specialty items directed toward proprietary computers, and more like interchangeable commodities. Thus, these market supply pressures have caused lower profit margins for both computer sellers who purchase computer components and computer component suppliers.
Heretofore, most business to business transactions for computer components have occurred through traditional channels such as sales calls and paper intensive negotiation. Such people intensive selling and buying techniques have thus become less and less practical. Heretofore, there has been a need for a system to lower costs of business to business transactions for the purchase of computer components.
On-line ordering systems have been devised in order to bring buyers and sellers together in a paperless or semi-paperless system for conducting on-line sales transactions. One such system for processing sales transactions is disclosed in U.S. Pat. No. 4,799,156 for an Interactive Market Management System. That patent discloses a plurality of buyers and a plurality of sellers which can be linked to each other by means of an interactive market management system (IMMS) for interactive communications. Each of the participating entities which is a subscriber to the system must always operate through the IMMS, which serves as a focal point or hub through which all transactions must be funneled.
In U.S. Pat. No. 5,557,518, a system is described for trusted agents for open electronic commerce. The system of this patent uses “money modules” to create a secure transaction environment for both the buyer and the seller of electronic merchandise and services. The primary objective of the patent is to provide a system which allows customers to buy electronic merchandise or services on demand without enrolling in an electronic community. In the described system, a customer and supplier trusted agent establish a secure session. The customer trusted agent communicates with a first money-module and the supplier trusted agent communicates with the second money-module. The supplier trusted agent delivers the electronic merchandise. The first money module transmits electronic money to the second money module. Upon successful completion of the money payment, the first money module informs the customer trusted agent, and the second money module informs the supplier trusted agent. The supplier then logs the sale and the customer may use the purchased electronic merchandise.
In U.S. Pat. No. 5,319,542, a system for ordering items using an electronic catalog is disclosed. The system of this patent establishes a private catalog resident on a customer's computer system. The customer can electronically requisition a product based on the information provided in the catalog and route or requisition through the appropriate approval process within the enterprise. The requisitions are then processed through the customer's procurement system and transmitted electronically as purchase orders to the supplier.
In U.S. Pat. No. 5,592,378, a computerized order entry system and method is disclosed which includes a plurality of servers, data entry devices, back-end systems and data bases. The computer order entry system is intended to permit placement of orders by capturing order information and storing the order information through the data capture mechanism. This is accomplished by a sequence of steps to search multiple search categories.
U.S. Pat. No. 5,970,475 provides for an automated procurement system used by employees within an organization to acquire goods and services that they require.
However, none of the systems described above are specifically tailored to enabling computer component business to business exchange. Further, none of the above described systems provide for financial rewards for using an on-line exchange system. Further, none of the above-described systems provide for ownership of the on-line exchange system by the businesses participating in the exchange, rewarding those businesses that use the exchange more often. Further, none of the above described systems offer larger percentages of ownership of the on-line exchange system based on successful referrals to the exchange system. Further, none of the above described systems provide for payments of referral fees from value added resources based on that value added resources' participation in a transaction from the exchange system.